Understanding Age Limits On Your Auto Insurance Policy

When it comes to auto insurance policy, age limit does play a role. Most insurance companies have age limits on who can purchase auto insurance. Your age is also a key variable in determining auto insurance premiums since your age shows your levels of driving experience, to a great extend.

Generally, most insurance companies require the applicant to be 18 years or older to purchase auto insurance on their own. This does not mean minors are not insurable. If you are minor, you will most likely be placed on your parent's or guardian's auto insurance policy. However, you might have to live with your parents for you to enjoy the benefits of your parent's or guardian's auto insurance policy. If you do not live with your parents or guardian, you will most likely have to purchase your own auto insurance policy.

In most cases, young drivers will need to pay higher insurance premiums. The main reason for this is the number of motor vehicle accidents involving teenagers. According to a survey, in 1999, teenagers were involved in 14 percent of all motor vehicle deaths. Even though teens drive less than most age groups, the number of accidents and deaths due to these accidents are alarmingly high. Hence, when it comes to auto insurance for teenagers, the premiums are always on the higher side.

Those without too many years of driving experience might be required to pay higher premiums. After the age of 30, the premium is pretty much the same for everyone.

When it comes to rental car insurance companies, they do have some age limits affecting both young and elderly drivers. The driver's age and experience is taken into consideration before rental companies rent out their car.

There are no age limits when it comes to elderly drivers. Elderly drivers can purchase auto insurance as long as they are able to pay the insurance premiums and maintain their driver's license. On the other hand, if an elderly driver has lost his driver's license or has stopped driving, but wishes to use a caretaker to driver him around, he will need to speak to the insurance company and add the new driver to the policy. Generally, this is acceptable by most insurance companies.

There are several factors that determine the rate of premium for your auto insurance policy. One of them is your age. Most insurance companies have an age limit when it comes to auto insurance. People below 18 cannot purchase auto insurance of their own and they will need to be on their parent's or guardian's policy. Age limit ensures that young and inexperienced drivers do not go around driving vehicles recklessly, which can cause serious accidents.

Ways To Get The Most Use Out Of An Auto Insurance Policy

Most people realize the importance of their auto policy to protect themselves, their vehicle and other people involved in the event of an auto accident. What most people don’t realize is that your auto policy can be worth so much more to you if you know what to use and how to use it. You may not even be using some of the things that affect your auto insurance quotes when the time comes. Be aware of what is included in your insurance policy and use it to the extent of its worth.

One of the first things that you must realize about any auto insurance quotes that you get online is that they include all of the possible coverage you elected for your policy. These different coverage options will all represent something different in your potential auto policy. The most impacting coverage to the premium you will be asked to pay is bodily injury/property damage liability coverage. This is what pays for injuries to persons or damage to properties that you were at fault for in the case of an accident.

This is important to know because if you or the other party report a claim to your insurance about an accident it will affect your policy. Regardless of what happens you have basically flagged your policy for review by the underwriting department. At this point if the claim is filed stop thinking about paying for the damage out of your pocket. You have already paid a lot out of pocket to get the coverage, don’t pay even more. Let your auto policy work for you, not the other way around.

Another coverage that will allow you to get the most out of your auto insurance policy is the roadside assistance coverage. Many insurance companies will simply provide this in every policy while others allow you to select or decline the coverage. This comes in to play when you have a blowout on the side of the road or have any other mechanical malfunction and need to be towed.

If you have rental coverage on your auto insurance policy you are definitely getting the most out of your policy. If you happen to be in an accident and your car is towed you will need something to drive and this coverage will be priceless.

Remember that with the auto insurance quotes you get online you are accepting or declining coverage that will change your auto policy. Make sure that you will use the coverage you elect to pay for and if you have the situation arise, take full advantage of the benefits you have paid for.

Five Ways To Help Get A Discount From Your Auto Insurance Provider

Purchasing a car is a milestone event for most people. It’s a large expense, and as such, the average buyer takes the time to shop around, do research, and ultimately get the car they want and need for the lowest possible price. It stands to reason that savvy shoppers would do the same when buying car insurance – shop around, do research, and purchase the policy that best fits their wants and needs. In doing so, it may come in handy to know five common ways to get a discount from your auto insurance policy provider.

One way to get an auto insurance premium discount is to assume more risk. Asking for a higher deductible is one method of assuming more risk and, consequently, saving more money up front. A deductible is the amount of money that you pay up front before your insurance begins to pay on the claim. For example, if you are in an accident that causes $2,500 worth of damage, and your deductible is $500, then the insurance company pays $2,000 after you pay your $500 deductible. In contrast, if your deductible is set at $1,000, the insurance company would only be liable to pay $1,500. Sure, a higher deductible means that the car owner pays more money when there is a claim, but in exchange for assuming that added risk, the monthly premium on the auto insurance policy will be less.

A second way to pay less for your auto insurance is to combine your coverage. If you own a house, consider buying car insurance from the same company that insures your home. Many insurance providers offer significant discounts for combining coverage. A third way to get an auto insurance premium discount is to make sure that your car has certain safety features. Some fairly standard safety features that may earn you a discount are antilock brakes, airbags, and automatic seatbelts, to name a few. Two additional means of discounting your auto insurance premium may be things that you are already doing – having a low-risk occupation (one whose workers statistically have fewer accidents) and being a member of a professional organization or auto club such as AAA. Many insurers offer driver discounts for both of these things, but it’s important to ask the questions and shop around because they may not automatically give the discount and not all insurance companies are alike.

Car insurance is a necessity, but having an auto insurance policy doesn’t have to break the bank. By keeping in mind these five ways of getting a discount, you can get the best policy at the best price. Shopping online can also help you find affordable coverage.

The Long Term Costs Of A Bad Auto Insurance Policy

A good auto insurance policy can make all of the difference after a collision. A decent provider will be there when you call, able to provide advice on how to proceed, willing to speak to the other driver’s insurance company, and ready to get a rental car set up for you immediately. As well, a great auto insurance company should have agents that can help put your mind at ease, instead of adding greater stress to an already difficult situation. Regardless of fault, your insurance company should be upfront about what is going to happen, and how long the process will take. If you are entitled to compensation, your company should be able to inform you about their progress. If your company must pay the other driver, they should be able to tell you exactly how much your auto insurance premium will increase.

Sadly, for many consumers, having a good auto insurance policy is far from a reality. Fortunately, finding a good auto insurance quote is easier than ever, and can help consumers avoid some of the serious pitfalls of having a bad auto insurance policy. While a bad auto insurance policy will often come with a very reasonable rate, the long-term effects are often not worth the cost. Here are some of the ways that a poor policy can affect you in the long-term.

First, a poor auto insurance policy will likely take far longer to pay out than a reputable one. This may not seem like a large inconvenience until you are actually in a car accident, and you either need to be paid out or the other driver needs to receive compensation. If the insurance company is slow in paying out, or gives you the run-around, it can mean a significant financial hardship for you if you are injured or your car has been written off. It can also mean potential litigation from the other party if your company refuses to pay them, or takes too long. This can be an extremely expensive prospect.

Additionally, having a bad auto insurance policy can eventually affect your chances to get a better quote in the future. If you have had multiple accidents that have all resulted in litigation, or which you listed as fault due to poor effort on the part of your insurance company, other auto insurance providers will be very leery about insuring you, even if none of the insurance problems were actually your fault. A bad auto insurance policy, despite its often initial low price and small monthly premium, is simply a ticking time bomb. While the explosion may not come initially, it’ll come eventually, leaving you with limited funds, potential litigation, and eventually no way out.

Why Smaller Auto Insurance Companies Might Not Provide Adequate Coverage

Everyone who operates an automobile needs to have auto insurance. In fact, it is mandatory to at least have liability auto insurance coverage in order to drive legally in the U.S. When shopping for auto insurance, keep in mind that auto insurance is controlled by the provisions and guidelines of individual states. Just having a liability only auto insurance policy may not be adequate coverage for you no matter who you buy your insurance from. For instance, if your automobile is financed, you will need to have a policy that provides comprehensive coverage. Liability-only coverage will only cover damages or injuries if you are at fault. Even then, a limited liability policy may only cover damages done to the other driver and his or her automobile.

In an effort to save money, many automobile owners consider going with a smaller auto insurance company. Many times, the smaller insurance companies will have cheaper premiums than larger insurance companies. There are all kinds of smaller insurance companies out there that offer competitive rates and a variety of coverage packages.

However, there are a few reasons why smaller insurance companies might not provide adequate auto insurance coverage. One of the reasons is that the smaller auto insurance company may not have adequate funds to cover a large accident. A smaller insurance company generally has a smaller pool of money to pay out from, which may pose a problem for them when having to pay out for a major accident. The more clients an auto insurance company has, the larger their pool of money will be, and the easier it will be for them to pay major accident claims. However, some smaller auto insurance companies have been around for a long time and are fully funded for such claims because they only insure the safer drivers who have excellent driving records. When shopping for a auto insurance policy, make sure you ask how the company pays claims. If they their explanation of their pay out claims satisfy you, then it may still be worth getting auto insurance through them.

However, you should also keep in mind that cheaper premiums do not necessarily guarantee you will have adequate coverage. If you are financing your automobile, you will need to have comprehensive coverage, which means higher premiums. When shopping for comprehensive coverage insurance from a small insurance company, make sure the policy they are offering you will sufficiently cover all your needs. This way you will be adequately covered if you are still paying on an auto loan. Having adequate insurance coverage is essential when you own an automobile.

Tips For Talking Your Auto Insurance Agent Into A Lower Rate

Most of us are familiar with the famous quote by Benjamin Franklin that states In this world nothing can be said to be certain, except death and taxes.’ The absolute truth of that statement is debatable, but few would argue against the notion that both those topics are unpleasant to think about. You may call them ‘necessary evils’ of the human experience. Likewise, all law-abiding drivers find auto insurance to be a necessary evil. You must have a valid policy, but that doesn’t mean you have to enjoy paying for it. Let’s consider some ways to negotiate a lower rate on your plan.

The first notion may be the hardest to swallow: you must be an assertive shopper because the insurance agent’s main goal is not to save you money. If you want to get the best deal, you should be prepared to revisit your plan every six months. Blind loyalty to one company can greatly cost you; it is financially beneficial to always keep your options open.

There are many varieties of auto insurance coverage. Remember to use competitors’ quotes as a starting point; but ultimately, it is better to talk to your agent on the phone or in person. Your agent may offer you special deals that aren’t advertised elsewhere if they know they may risk losing your account. Ask about multiple vehicle discounts, such as ‘umbrella coverage,’ which combines your auto insurance policy with a homeowners’ plan and higher deductibles. Be careful not to raise your deductible too much because if your deductible is maxed out and you’re involved in an accident and need to file a claim, you typically won’t get any compensation unless the car is totaled.

Note the various factors when discussing discounts with your agent. Have you had your existing policy for a long time? Ask about renewal discounts on a long-term membership. Has your credit score improved recently? This could lower your rate simply by asking about it. Similarly, if you have a prior accident on your record yet have been a safe, incident-free driver for the last three to five years, you could be eligible for some savings. Finally, reevaluate all the ‘extras’ on your policy. If you have a good health insurance plan, your hospital costs may be covered in case of an accident, making the ‘personal injury’ option redundant. Also, if your car or truck is an older model, you probably can forgo the comprehensive collision option, if repairing the vehicle would cost more than its worth. Shopping for car insurance may seem like a hassle, but as a wise man once said, ‘A penny saved is a penny earned.’

Special Types Of Auto Insurance Coverage For Customized Vehicles

Have you ever seen the TV show Pimp my Ride?’ In this program, the host, a famous rap star, accepts videos from viewers who ask him to help them out with their cars. Their cars are old, beat up, full of rust, held together by duct tape, and in some cases, it is hard to believe that they are even still running. When selected to participate on the show, their old cars are given an extreme makeover with no boundaries. And when I say no boundaries I mean chrome grills, spinners, hydraulics, spoilers, flat screen TVs, fish tanks, full surround entertainment systems, mini casinos, etc. So now that the lucky winners on the show have got their cars all supped up, how do they get them properly insured?

If you have invested a large amount of money to customize your vehicle, you may be eligible for special auto insurance coverage. Most car insurance companies offer to cover your add-ons at an additional cost. This means adding on an endorsement to your current coverage for collision to cover the modifications. It is in your best interest to shop around different auto insurance companies to get the best rate. Keep in mind that each company offers a different amount covered under your endorsement. This amount usually only covers the value of the customized parts, not the expense you pay to replace or repair them. This means that the often pricey installation bill for labor from a mechanic shop will not be covered.

If you are considering customizing your vehicle for the first time, here are a few things to consider: First of all contact your insurance company and let them know exactly which modifications will take place. Make sure that your insurance company will cover these, and if not, you may have to find another company that does. Some companies may be hesitant to insure owners of specialized vehicles under the assumption that these drivers may be ‘wild drivers,’ tend to speed, and the possibility of a high payout to cover the customized parts and equipment in case of an accident.

Overall, all other factors that are taken into consideration when getting an auto insurance policy remain the same, whether your vehicle is customized or not. So when shopping around, use to your advantage any information that may help you lower your monthly payment such as good grades if you are a student, a perfect driving record, home owners insurance, etc. Expect to pay a little more for your customizations, but with enough research, you should be able to find coverage for your needs.

Keeping Your Auto Insurance Bill Low After Making A Large Claim

You may see yourself as a good driver and a low-maintenance customer who doesn’t create too many problems for an auto insurance carrier. Imagine that one day you have an accident, perhaps through no fault of your own. However, you recognize the implications the event may have on your auto insurance policy. Your friends tell you that an auto insurance claim may cause your premiums to increase, whether you were at fault or not. Fortunately, insurance law is not quite that fatalistic. Nonetheless, you can expect to feel some of the effects of the accident in your future premiums. However, it isn’t the end of the world and there are some measures you can take to keep your auto insurance premiums in check.

One of the first things you can consider is to raise your deductible. You could wind up having to have to pay the first several hundred dollars of a loss out of your own pocket. However, it would ultimately bring your premiums down. The premiums for a policy with a $200 deductible will be higher than those for a $500 deductible. In other words, you’re essentially telling the insurance carrier that you don’t want to pay lower premiums, but in the event of an accident, you realize you’re going to have to pay for the first few hundred of the loss.

This is not for everybody, but it is one of the most commonly used methods for lowering premiums. Another method to lower your premiums would be to reduce the limits on your liability coverage. However, you should realize that with this move, you are actually making a reduction in the quality of your insurance. Instead of carrying generous coverage limits of $100,000/$300,000, you may opt for lower limits. However, you should realize that lower limits signifies that in the event that you are sued, the party suing you is going to receive less money from your insurance carrier. If that particular person or their lawyer is not satisfied with the payment, a possibility exists that they could come after you personally for the loss. This could result in an expensive way to lower your premiums, and ultimately this choice greatly depends on your personal financial situation. If you have considerable assets that might be at risk in the event that your insurance coverage was inadequate, you might feel more comfortable in sticking with simply tweaking the deductible.

Another way to lower your premiums is to take a defensive driving course. This can lower your liability premiums by as much as 10% in some cases. However, there may be limits as to how frequently you can take such a course.

Is Accident Forgiveness A Worthwhile Auto Insurance Add-on Cover

Quite a few extra coverage options exist that a driver can buy when purchasing an auto insurance policy. However, many of these options are not necessarily great purchases for every buyer. For instance, customized parts and equipment coverage are not necessary if a car is not going to be modified or upgraded. Other add-ons, however, seem like logical buys, such as accident forgiveness. Accident forgiveness stops an auto insurance claim from counting as a point on a driver’s record. Since the cost of auto insurance coverage can skyrocket when a claim is made, some drivers consider it a great deal. As with any add-on, it is worthy of consideration, but it is important that drivers understand exactly how accident forgiveness functions.

The problem is that several auto insurance companies offer accident forgiveness, however, the terms may vary greatly. In general, drivers are required to keep a good driving record in order to become part of an accident forgiveness program. One or more traffic citations may result in exclusion. If you have been involved in an accident or have had a citation, you may not be allowed into the program at all. Accident forgiveness is inexpensive yet does come at an extra cost. They are certainly worth the money if you are ever involved in a fender bender. However, a major accident may not be covered under an accident forgiveness program. The program may also extend to all accidents and not just accidents caused by you.

Therefore, it is extremely important to fully read over the details of the add-on before deciding whether or not to purchase it. Talk to your insurance agent if you do not fully understand any of the terms laid out in the auto insurance policy. Ask whether serious accidents are included in the add-on. Also, ask if whether or not you will be notified in the event that you are suddenly excluded from the program. It should go without saying, but the cost of such an add-on is also important. Make sure that you know what you are paying before you decide to make a purchase.

Again, it is important to stress that accident forgiveness is often well worth the cost. However, remember that each driver’s situation will vary. Assuming a driver is eligible, and the addition only costs a few additional dollars each month, it is difficult to think of a reason not to opt into an accident forgiveness program. Accidents can happen at any time, and they can happen to relatively good drivers, so a bit of extra protection could save you quite a bit of money in the long run.

When Items Stolen From Your Car Aren’t Covered

Vehicles get broken into quite often leaving people unsure and angry. It’s a troubling experience that people shouldn’t have to go through, but unfortunately, they do. Your privacy has been invaded, your personal belongings are gone and you’re stuck to clean up the mess.

The first step is to make a claim on your auto insurance policy and fix the damage as quickly and possible. But the tricky and at times frustrating part is figuring out what items your auto insurance will actually cover in this already tough time.

Common Items Stolen From Vehicles:

Most break-ins occur because a burglar will spot valuable items inside a vehicle. Some common items stolen include: Car stereos, cell phones, CDs, laptops, small electronics, MP3 players and wallets or purses.

Many times people are unsure about which items are covered on their auto insurance policy.

What Most Auto Insurance Policies Will Cover:

With most auto insurance policies, damages due to theft will be covered under your comprehensive coverage. After the break-in, check your auto insurance policy to see if you have comprehensive coverage. This will tell you what items are covered in the event of a theft.

In most cases, only car stereos will be covered by your auto insurance, and you can’t even always count on that being covered. This happens because most stereos are made so the unit can be detached from your car; in other words, it’s not considered part of your car. This also explains why the other items are not considered part of the car, since they are not physically attached to it. All your other items will most likely be covered by your homeowners (or renters) insurance policy.

If the thief breaks a window, scratches your door, breaks the lock or does any other damage to the car itself, the damage will be covered under your comprehensive coverage if it’s on your policy. With comprehensive coverage, all you’ll need to do is pay your deductible and your insurance company will pay for the remaining amount of damage.

Avoid Being the Victim of a Burglary:

There are a few steps you can do to prevent someone from breaking into your vehicle. The biggest thing would be to install an alarm system. They can be quite expensive, but in the long run, it’s an investment worth making. Next, always keep the doors locked and windows closed, even if you’re just running into your house for a second.

Don’t leave any valuable items (purse, cell phone, wallet, keys, etc.) out in the open. It is best to leave them in your glove box.

Just a few simple steps can prevent you from having to deal with the aftermath of someone breaking into your car.

Why Some Think 2010 Is The Year For Green Vehicles

The grass is always greener on the other side’. While this may not always be true, it could be for the ‘green’ vehicle forecast of 2010. Sustainability, eco-friendly, and green are just a few buzz words floating around our recessed economy as consumers are constantly looking for ways to better the environment around them. Is 2010 the best time to go green on the road?

Car companies wised up a couple years ago, catering to the mass market demand of more fuel efficient vehicles as gas prices rose to more than $4 a gallon, and they continue to please with new options every year. In 2010, Honda will introduce a new Insight, modeled very closely after the Prius, with an EcoScore system that tells the driver how ‘green’ they are driving. And going to back to the basics by choosing a manual over an automatic transmission boasts Insight’s overall mile per gallon to 51 mpg. Honda also introduced the Civic GX that runs completely on natural gas. Since the Smart Car passed U.S. standards and safety inspections, more consumers are jumping on the European bandwagon and purchasing this mini vehicle, realizing its 44 highway mpg is checkbook as well as eco-friendly, not to mention convenient to park. Looking larger, automotive companies are converting more and more SUVs to be environment-friendly, such as the Cadillac Escalade. In 2010, GM introduced the first ‘green’ Escalade as a hybrid. The unfortunate downside is it starts at $80,000. It may be eco-friendly, but that is all. However, GMC’s Sierra is also a SUV hybrid that offers a more economical price tag starting in the high 30s.

Perhaps the most anticipated vehicle of 2010 is a Canadian import that is lauded for its 280 mpg, affordable pricing for under $22,000, and its silence. ZENN Motor Company is tagging the ZENN as ‘Zero Emission. No Noise’. It is a fully electrically-operated vehicle that requires no gas and can be recharged within four hours by plugging it into any electrical outlet. The only ugly side as of now is that it’s not approved for highway use and has been deemed a city car. Other than that not bad, eh?

Last year had many consumers bating their breath in hopes of the ‘greenest’. This year may be greener than 2008 and 2009, as technology is allowing automotive companies to create more alternatives, revamp the old alternatives and augment with new additions such as EcoSource. However, this does not mean 2010 is it. Automotive companies are constantly learning on how to improve and how to innovate, and many 2010 advances are not enough to trade in your 2008 eco-friendly vehicle for the ‘new and improved’ 2010 eco-friendly vehicle.

The Consequences Of Withholding Information From Your Auto Insurance Company

When you begin the search for an auto insurer, you will find yourself asking for auto insurance quotes from a number of companies and hoping one comes at an affordable rate. However, you can be sure the auto insurance agents will be asking you questions as well regarding your driving record and whether you’ve even been in a car accident. You know that answering yes’ will mean a higher auto insurance quote if the company is willing to offer you auto insurance coverage at all.

You need to always tell the full truth on the insurance application. It is legally required that you report all auto accidents you have been involved in, claims you made against previous auto insurer, and/or any driving infractions. Failing to do so could make your auto insurance more costly than if you had been honest up front. Even an accidental omission could end up costing you a lot of money. According to Auto Insurance Tips.com, about one out of every five drivers leaves out some information-whether accidentally or purposefully- when applying for new auto insurance coverage.

Once you fill out an application for auto insurance coverage, the company is going to review the information and verify it. If it is found that you left out some of your driving record, the insurance company may turn you down. If you left out information and still received insurance, your best course of action is to tell the agent you remembered additional information. The auto insurance company is less likely to drop your coverage if you bring an omission to its attention. Your auto insurance rates may still increase, but at least you will still have coverage.

If you already have an auto insurance policy and are involved in an accident, you need to report the incident to your auto insurance agent even if it is a minor accident that you plan on covering repair costs for yourself. You never know when the other driver involved in the accident might make a claim down the road. If your auto insurance company doesn’t know about the accident, then the company may drop your coverage, raise your rates, change your coverage or reduce your auto insurance coverage once the omission is discovered. If you can notify your auto insurance agent immediately following an accident, do so because your auto insurance policy may have restrictions on who can tow your vehicle as well as where it can be repaired. Though you don’t legally need to notify your insurance agent immediately after an accident, you shouldn’t wait for longer than a week before letting your insurance agent know. The longer you wait, the more suspicious you will appear.

Finding Affordable Insurance For Your Muscle Car

Muscle cars are irresistible. Even in this age of fuel efficiency and aerodynamics, the muscle cars of the seventies and eighties are still classic examples of car design at its finest. The roar and power of the engine, the shape of the body and the sheer excitement of driving a muscle car all make these vehicles fun to own. They bring enjoyment to drivers, but can put a dent in you wallet when going for an auto insurance policy. This makes finding affordable muscle car insurance important. Muscle cars are built for speed, which is why insurance coverage for them is so expensive. There is a direct relationship to the horsepower of a car and the amount of damage it can cause in an accident. The heavy weight of muscle cars also makes them more likely to do a lot of damage. Most car insurance companies consider these factors and charge high rates for policies on such cars. But a muscle car owner that takes the time to shop around and think ahead can find an affordable auto insurance quote for his or her muscle car.

This first thing to do is call your regular life or home insurance carrier for an auto insurance quote on you car. A company that already profits from the policies you buy will be much easier to bargain with on insurance rates. Your clean driving record can also go a long way in convincing the company to give you a good deal or a discount. Even if your driving record is not perfect, or you don’t already have an established insurance company, you can still seek out a specialty car insurance company.

In fact, an entire industry has sprouted around muscle car insurance. There are companies that only offer policies for fast or high-end cars. You can find these companies online and read all about the coverage you can buy for your muscle car. Locate three companies and get an auto insurance quote from each one to make sure you are getting the best deal. Take a minute to check out the company’s rating to make sure they will be around to pay a claim if an accident should happen.

There will be certain factors that can cause problems for muscle car insurance buyers, even with a specialty company. Find out about any annual mileage limits, coverage for spare parts, vehicle repair insurance or stated value coverage. Before you actually buy the policy, make sure you have the change to read a copy carefully first. By following these guidelines, you will be able to find a policy that covers the special needs of your muscle car at an affordable rate.

The Steps To Take If Your Auto Insurance Company Goes Under

The first step you must take in the event your auto insurance company goes under is to search for insurance under another carrier. When doing so, keep your policy documents where you can easily find them, as they will be helpful when you shop for new insurance. You will likely want your new policy to provide the same sort of coverage as your previous one. Your policy documents the vehicle(s) insured, the parties authorized to drive the vehicle(s), and the types of coverage you purchased. Your policy documents will also outline limits on your liability coverage, provisions for uninsured or underinsured motorists, personal injury protection and whether you had collision and comprehensive coverage. Although shopping for insurance is inconvenient and time consuming, it does provide an opportunity for you to take stock of your personal situation and consider if the coverage you signed up for five years ago is still good for your needs today.

When you purchased auto insurance, you did so for the dreaded contingency that you might have an accident. Insurance companies are obligated to review claims for accidents occurring within the calendar dates of coverage on the policy. If you had an accident and your carrier went under, you’ll have to look into how your coverage claims will be carried over to another entity. If your carrier went into rehabilitation or liquidation, you might have to check with your state insurance department about how its claims are being handled. Another possibility is that the company could have been taken over by another carrier. Regardless of what happened to your auto insurance company, you’ll need to learn how its former claims are being handled. This is important for two reasons. First, you may still need no-fault benefits for medical treatment if you were injured in the accident. Additionally, you may need to be defended against a plaintiff if you’re being sued in connection with the accident – which is a service your auto insurance policy provides for. Because a carrier’s remaining assets may be consumed quickly if it’s in some form of receivership or state protection, you should move quickly.

You probably never thought you would have to replace your auto insurance due to your agency going under. However, use this opportunity to your advantage. Take time to reflect upon your assets and the scale of protection that’s necessary for you and your family. Look at things you might change on your policy to either save some money or enjoy better protection. And, again, if you had pending claims, move quickly to learn how they are now being handled. Following these steps will ensure you retain the proper coverage while on the road.

The Difference Between Commerical Auto Insurance And Conventional Auto Insurance

Obviously, different types of auto insurance are made to cover different types of risks. The main difference between commercial auto insurance and conventional auto insurance lies in the use of the vehicle. If you use your car to get to work, shop for groceries and take the kids to school, it’s considered personal use and is covered with a basic conventional policy. However, if a vehicle is used for commercial purposes, the rules change and that ordinary auto insurance policy is no longer adequate to cover the greater level of risk associated with commercial use of a vehicle.

Commercial vehicles are defined in different ways. For example, commercial insurance is required if the vehicle is used to transport passengers for hire. A good example of this is taxis or limousines. If a vehicle is used to carry out a service outside of personal use it should also carry a commercial auto insurance policy. Additionally, if a vehicle is used under the name of a corporation or other business entity, such as Harry’s Landscaping Service, Inc., such use is commercial in nature. This also applies if employees of that corporation use the vehicle in the course of their duties.

Commercial auto policies generally differ from personal policies in the amount of coverage a policyholder carries. In fact, it is not uncommon for commercial policies to exceed one million dollars of coverage. However, most of the basic risks that a commercial policy protects against are the same ones found in a conventional personal auto policy. The included coverages are usually bodily injury, property damage, no-fault, collision, comprehensive and uninsured/underinsured motorist protection. Bodily injury and property damage coverage is necessary to protect against lawsuits by third parties. No-fault pays medical expenses for the vehicle’s driver and occupants regardless of fault. Collision and comprehensive covers physical damage to the vehicle, and uninsured/underinsured protection covers against vehicles with no insurance or inadequate insurance.

When searching for the best auto insurance quote – whether for commercial or conventional coverage – it is important to disclose the nature of use that you have planned for the vehicle. No one is being fooled when a personal vehicle is used for commercial purposes. At best, an insurance carrier will suspend the personal coverage because it doesn’t reflect the commercial use of the vehicle. At worst, the owner could face the unpleasant surprise of the insurance carrier refusing to defend him in the event of a lawsuit because the use of the vehicle was fraudulently misrepresented.

Understanding the difference between commercial and conventional auto insurance to determine the coverage you should buy is very important. If you don’t have the right coverage in an accident, the costs could be substantial.

Cross-state Insurance Fraud Affects Auto Insurance In Pennsylvania

While the process of obtaining auto insurance has become far more streamlined in recent years, reducing the amount of time that consumers need to invest in this activity to a minimum, the cost of insurance premiums seems to climb ever higher. Though this can be partially blamed on the current economic downturn, many insurance companies will cite an increase in both cars and accidents on roadways to justify higher costs. However, other factors, such as the growing practice of auto insurance fraud and rate evasion, can drive up costs for even the most conscientious of drivers.

Rate evasion is the practice of fraudulently registering a vehicle in another state, with the owner claiming that they either live in the area or store their car there. This allows them to avoid much higher insurance costs in than their home state, where they may face either steep premiums for previous accidents, or may simply be subject to more stringent regulations under their state’s Transportation Board regulations. One area in which this practice is becoming increasingly common is the state of Pennsylvania, which, due to its proximity to both New Jersey and New York, has seen an influx of rate evaders from these two high-population zones.

Two determining factors in any premium cost will be what vehicle the state is registered in and where the vehicle will be driven. If the vehicle is registered, for example, in the small town of Wellsboro, PA, the insurance company will correctly assume the area has a limited number of high speed or dangerous collisions, and thus the premium charged on that auto insurance policy will be low. If the vehicle is actually being driven in urban New Jersey, however, where the rate of accidents is far higher, the possibility of both an accident or injury, and therefore a claim, increases dramatically.

This can lead to insurance companies in Pennsylvania paying out large claims to owners that do not actually drive their cars in the state, let alone reside there. The attorney general for the state of Pennsylvania, Tom Corbett, has stated that over 13 million dollars is paid out every year by honest citizens of the state to compensate for accidents that actually belong to out-of-state drivers registering their cars unlawfully. If allowed to continue unchecked, the premiums of drivers properly registering their cars could increase almost exponentially as other drivers take advantage of online insurance providers and confusing cross-state legislation. Law enforcement authorities in both Pennsylvania and its neighboring states have hastened to assure consumers, however, that they will begin to more aggressively prosecute rate evaders by turning more scrutiny on registration documents, hoping to stem the problem at its source.

How Understanding Coverage Levels Can Reduce Your Premium Costs

In tough economic times, any cost-saving measures that can be taken, should be. In the realm of auto insurance, understanding your coverage levels can help you keep your auto insurance premiums lower.

When determining your coverage levels, make sure to understand what you’re looking at. Carriers generally designate an auto insurance policy by two numbers with a slash between them, such as 25/50, 50/100, or 100/300. The first number represents how much liability coverage is available per person in the event of an accident. Liability coverage is what protects you from the lawsuits of others. The second number represents the total amount of liability coverage for an accident. If there are several people injured in one car, they’ll have to split the pie between them. This means that if you carry a 25/50 policy and have an accident with a driver and three passengers, the most your carrier will reimburse them is $50,000. By purchasing the lowest possible insurance coverage, you have saved money over buying a 100/300 policy.

However, be cautious when considering buying the minimum amount of coverage. In an accident involving four people, $50,000 is not going to go very far. If claims against you cost more than that, you will be forced to pay out of pocket or through your assets. So, instead of getting minimal coverage, opt to save on your premiums by looking at limits in other safer areas. You have limits on uninsured and underinsured motorist protection. You purchase this for the contingency that you may have an accident with someone who has no insurance, or has pitifully low limits of insurance. You could opt for lower limits on these coverages. Although you might still feel uncomfortable in making reducing your protection there, it is probably preferable to making a concession in your liability coverage.

When comparing one auto insurance quote with another, you can explore even more ways on lowering your premiums. If you don’t mind paying the first few hundred dollars of a loss out of pocket, you could opt for a higher deductible. For instance, premiums will be lower for a policy with a $500 deductible as opposed to a $200 deductible. If you don’t have an accident, you enjoy sizable savings at the end of the year. Like other aspects of insurance, it’s essentially a gamble. You could also save by not opting for the supplemental provisions of your first party benefits, such as enhanced lost wages benefits.

When you’re shopping for auto insurance, understanding your coverage levels can be a great help in saving you money on your premiums. Obtaining adequate, yet minimal coverage may put a good wad of cash in your wallet at the end of the year.

Why Driving While Stressed May Increase Your Auto Insurance Rate

If you’ve looked for auto insurance quotes online, you’ve probably taken a few steps to make sure you’re getting the best rate possible. Whether you have contacted several insurers individually or used a comparison shopping site to get several quotes, you’ve taken action to make sure you find the most cost-effective auto insurance policy for you. However, the biggest determinants getting these affordable premiums is the number of car insurance claims that you end up making. If you’re prone to driving while stressed out, you may be taking unnecessary risks that could result in a much more expensive insurance policy.

Stressed out drivers have less rational control over their actions and drive in ways that are unsafe for them, their passengers and the other drivers on the road. Stress can cause a driver to jam on the gas pedal, for instance, which prevents the driver from having adequate reaction time when coming up on a slow moving car or object in the road. They’re also more likely to slam on the brakes, which causes the opposite problem for drivers behind them – they’re not able to stop quickly through no fault of their own, resulting in a car insurance claim for the aggressive driver. Stress causes drivers to behave erratically, passing and cutting off other vehicles and creating volatile conditions that could easily result in a serious accident.

Avoiding the dangers of stressful driving can be very simple. Drivers who feel angry or emotional should simply stay off the road for several hours, or take a few minutes to cool off at a rest stop or gas station until they’re able to drive more rationally. A few deep breaths and a non-caffeinated beverage can also be very helpful. Making a conscious effort to drive more slowly can decrease stress in and of itself, and gives the driver (and other drivers) more time to think and react. Staying back from the flow of traffic and giving other drivers plenty of room is also very helpful, and can help you avoid a bad case of road rage.

If you’re able to drive without stress, you’ll build an impressive driving record that will result in less expensive auto insurance. Calm driving tactics make you a safer driver, less likely to cause a dangerous accident, and less of a risk to insurance companies. You’ll often find much better auto insurance coverage at much lower rates if you drive while conscious of your stress level. So, for this reason, be sure to pay attention to your driving habits, particularly when you’re driving under the influence of strong emotions. Keeping your head clear will be better for you, your auto insurance and every driver on the road.

Why Are All State Auto Insurance Requirements Different

When it comes to auto insurance requirements, each state in the United States sets its own standards that its citizens need to adhere to in order to operate a vehicle. Because there are no federal standards for auto insurance, there are no states that have the same requirements. For instance, each state mandates the minimum amount of coverage an auto insurance policy must provide in terms of bodily injury liability per person, total bodily injury liability and property damage liability on an accident-by-accident basis. Similarly, the penalties for not having adequate auto insurance also vary by state. The primary reason why states vary in their auto insurance requirements is because each state is loosely classified as being either a tort state, no-fault state, or add-on state.

Tort states, also known as fault’ states, require auto insurers to cover claims only to the degree by which the driver is decided not to be at fault. For instance, if you run a red light in a tort state and cause an accident, your insurer may not be responsible for covering any costs you personally incur for either property damage or medical bills, or costs for which you are deemed responsible following a lawsuit. However, even in tort states most auto insurance providers offer policies that cover medical bills and sometimes even property damage regardless of fault. Most states have adopted these tort-based systems.

No-fault states differ from tort states in that insurers are required to cover medical costs regardless of who is determined to be at fault for an accident. The most important feature of no-fault states is that while they do not allow one driver to sue another seeking medical compensation, they do allow for insurers and individuals to sue one another for property damage, including damage to one’s vehicle. The justification for a no-fault system of auto insurance is to reduce the costly burden placed on both the legal system and individuals in resolving accident claims via lawsuits and to generally expedite the process for drivers.

Add-on states represent a combination of the tort and no-fault state approaches, generally requiring that accident victims seek compensation from their own insurers, but place little or no restrictions on lawsuits against the other involved parties in order to seek compensation based on who was at fault. Drivers in add-on states can purchase optional personal injury protection that requires their own insurer to pay medical costs regardless of fault, but still maintain the driver’s legal right to sue the other party for additional accident-related injuries and for pain and suffering.

It is important for all drivers to familiarize themselves with the requirements of their own state to ensure they seek the proper sort of auto insurance quote.

The Difference Between An Amendment And An Endorsement On An Auto Insurance Policy

In the market to buy a new auto insurance policy? Shopping for a competitive discount rate is the easy part. While learning how auto insurance policies differ from company to company could take a little more time, it also could dramatically affect the rate that you will ultimately pay. However, you could also choose to stay with your current policy. A friendly auto insurance customer service representative will give you an auto insurance quote and update you on auto insurance policy information. Using a clear understanding of your driving record, these folks can help you determine your best options and what advantages or limitations that can offer you. Once you’ve decided upon your policy, it’s imperative you understand the difference between an amendment and an endorsement so that you don’t suddenly find yourself paying an increased auto insurance rate.

An auto insurance amendment is an update or a change made to your auto insurance policy that would change or correct coverage and therefore change the cost of your new policy. For example, if the state in which you live changed the legislative requirements for auto insurance companies to increase or restrict bodily injury coverage and the limits for bodily injury were increased or even decreased, there would be an auto insurance amendment to your policy. You would receive an updated declarations page in the mail with the new limits to bodily injury in the incident of a collision. Most likely this will affect the cost or the rate and your new policy would need to be adjusted. When you obtain your policy, inquire about the procedure your insurance company follows to make these sorts of changes.

An auto insurance endorsement is a change made to your policy instigated by you, the policyholder. If you make an endorsement to the policy, such as adding another vehicle or adding another driver or another car, be aware of the costs associated with that coverage. Because the coverage would change in this situation, the rate you pay might also be adjusted. It is wise to understand the variables that might affect a change of rate and coverage in your policy.

In summary, when shopping for a new auto insurance policy the best idea is to choose an auto insurance company that is not only competitive in rates, but flexible, when it comes to making changes to your policy. Make sure you are familiar with their policies and be aware when changes are being made to your coverage. Being flexible should appeal to the auto insurance company because it allows customers to grow with the company. And loyal customers that are happy with the way their policy is handled will ultimately bring profits into the auto insurance company.

Learning How To Read The Fine Print On An Auto Insurance Policy

All auto insurance rates vary, as do the conditions of each individual policy. Therefore, as tedious as it may be to read the fine print on your auto insurance policy, it is a necessary and important task for you to undertake. The reason it is so crucial to this is because, as a consumer, you need to fully understand the terms of the policy – it represents entering into a legally binding agreement with an auto insurance company. It is beneficial to clarify all of the terms and conditions up front rather than be surprised later by a technicality. Therefore, request the terms of an insurance policy at the same time as requesting an auto insurance quote so that you are able to understand exactly what you are paying for. Intimidated by all the strange vocabulary and insurance terms? Here are some tips you can use when reading through your auto insurance policy.

Some common terms in a policy require the consumer to report an accidental injury or death within five business days of the accident, require an injured person to provide evidence of injury due to an accident, and indicate that if a person is under the influence at the time of an accident, or does not observe proper traffic laws, the insurance company is not liable to pay. There are also several important items found in the fine print of a policy, including what happens if you lend your car to a friend or family member and they get into an accident, whether or not your insurance covers you if you rent a car, and circumstances that will increase your premium.

Generally, auto insurance policies state that the consumer is to pay a certain amount of money to protect oneself from financial loss in case of bodily injury or vehicular damage because of an automobile accident. The company will cover expenses as illustrated in the policy when any incident that is covered occurs. The logistics of how these benefits will be paid, as well as exceptions to the rule, are where the grey areas often occur within policies. That is why it is so important to fully understand your terms of coverage – in the event of an accident, you will be fully prepared to handle all claims.

Read through the entire policy and make note of any areas that seem unclear or confusing. Seek clarification from an agent in order to fully understand a policy; the agents are there to provide explanation and guidance. Auto insurance policies are complex documents that may require some time to understand. However, taking this time will be worth it when it comes time to file a claim.

How To Get The Most Accurate Auto Insurance Quote Online

When you want to get the most accurate auto insurance quote online, it’s a good idea to know how insurance companies rate vehicles and determine insurance costs, discounts and options that can affect how much you have to pay. If you give the insurance company as little information as possible, whoever answers your request won’t have enough to go on in order to make your quote accurate. It’s tempting not to offer too much information so you don’t get spammed with companies trying to sell you something – especially if you use a site that lets you get quotes from multiple companies – but it’s very important to be thorough in order to get an accurate price on an auto insurance policy the first time around.

The best information you can offer to any auto insurance company is the VIN of the vehicle you’re thinking about purchasing (or already own). The VIN, or Vehicle Identification Number, is found on every vehicle. It can tell an insurance company the make, model and year of the car, truck or motorcycle. It also helps with auto insurance quotes because the insurance company can determine what kind of equipment came standard on that particular car. This could include things like front and side airbags and alarm systems, as well as anti-lock brakes and other options. The higher the number of safety features the lower the cost of insurance – no matter what type of car you’re driving. The VIN will provide the insurance company with the most accurate description of the car and, therefore, making it possible for them to provide the most accurate auto insurance quotes. You can certainly get auto insurance quotes without it, but you might find that your auto insurance policy doesn’t cost what you thought it would as it may adjust when you actually enter your VIN for the final purchase.

If you don’t have the VIN, providing the make, model and year of the car are all necessary to get auto insurance quotes that have any kind of accuracy. In addition, it’s important to find out what features your vehicle has. If you don’t know, you should say that the car doesn’t have the feature. That way, your quote for auto insurance may be higher than what you actually have to pay, but it won’t be lower. If you say that the car has every safety feature, but the VIN reveals that this is not the case, your price for the auto insurance policy could potentially be a lot higher than you were expecting.

When you’re serious about getting good auto insurance quotes, the more information you can provide the better for the company to help you.

How Important Is It To Have Mechanical Breakdown Insurance Coverage

For anyone who owns a car, the idea of breaking down in the middle of nowhere is a nightmare. Therefore, getting an auto insurance quote that includes breakdown coverage is critical. At the time of such an unfortunate event, your auto insurance policy could make all the difference. Under your policy, mechanical breakdown insurance coverage can help you turn a difficult situation into one with a quick solution. Put simply, you never know if or when you may breakdown. The value of knowing you will be fine in a breakdown situation makes a comprehensive auto insurance policy the best option all round.

As with any other coverage, getting an accurate auto insurance quote is the place to start. Even if your car is brand new, it is still important to have the peace of mind that mechanical breakdown insurance coverage provides. Breaking down is never fun, but the time, location and situation can always make a bad situation worse. What you do not need in the event of such a mishap is the immediate concern of how you are going to sort things out. Having an auto insurance policy that covers breakdown repairs, towing and other related issues is the only way to go.

When you are shopping for that all-important auto insurance quote, it is important to read the details. If you want mechanical breakdown insurance, make sure to let your agent know, as this coverage doesn’t usually come standard on most policies. Additionally, your breakdown coverage will vary based on many factors to ensure that your policy is personalized to reflect your needs based on your situation. Have your agent go over everything that is going to be covered under this area of your policy so you aren’t caught off guard when the time comes to use it. This way you’ll know if towing is covered or if calling someone to change your tire is covered.

Some people go without an auto insurance policy that covers breakdowns. It may save money on premiums, but there will always be a price to pay. If you do not have mechanical breakdown insurance coverage and your car breaks down, the cost will soon be clear. Tow trucks, call outs, repairs – they all cost a lot of money. Wouldn’t it be better to have an auto insurance policy that covers all that? Being at the side of the road and knowing that one call to your insurance company will ensure you have a reliable, cost-efficient fix to a difficult predicament is worth it. So if it’s peace of mind and safety for you and your loved ones that you’re looking for, mechanical breakdown insurance coverage is the answer.

The Details Of Comprehensive Physical Damage Coverage

Comprehensive physical damage coverage is one of the three auto insurance policy coverages that, combined with collision insurance, fire and theft coverage, and combined additional coverage, essentially makes up the physical damage auto insurance package. It works to protect your car in cases of theft, fire, windstorm, vandalism, glass breaking and a lot more. If you have this coverage, your auto insurance company will either pay to restore or replace the vehicle. Damage caused by collision with another vehicle or object is not included as it falls under another type of coverage. it is definitely something to pay attention to when examining an auto insurance quote.

Comprehensive physical damage coverage is vital if you really want your vehicle protected and secured against almost all types of damages – with the exception of collision accidents. Comprehensive insurance coverage is required if your vehicle is leased, but if it is wholly paid, comprehensive is not mandatory. Regulations regarding comprehensive coverage vary among states. In many states, not all vehicles are eligible for comprehensive physical damage coverage. And for these ineligible vehicles, the fire and theft with combined additional coverage can be purchased in lieu of the comprehensive coverage. With comprehensive coverage the insured is also required to get a deductible. The more money you shell out for the deductible, the less insurance premium you will have to pay.

Though your vehicle will be protected against many types of damages, several policy exclusions must be noted when purchasing comprehensive coverage. For example, if the vehicle is destroyed or confiscated by the government authorities due to a family member’s involvement in an unlawful activity, the coverage won’t be viable. Other exclusions are stereos, radios, tape decks, CD players or other electronic apparatus that are not permanently set-up; also. This also includes other electronic gadgets like telephones, two-way radios, personal computers, scanning monitor receivers, discs and tapes or some other medium utilized in conjunction with other electronic gadgets. In addition to electronics, various other articles of furniture will likely not be covered due to their temporary relation to the car. These may include, furniture, extraordinary carpeting, cooking and sleeping facilities, paintings, a trailer or a camper body that is not included on the declaration page of your auto insurance policy, and cabanas, awnings or devices intended to build extra living amenities.

It should be noted that not all auto insurance companies and auto insurance coverage are the same. It is vital to thoroughly study different features of each company, shop online and research more on the particular auto insurance coverage you are thinking of purchasing. Carrying comprehensive insurance coverage will make it easier for you to deal with misfortune when it befalls, when the unexpected happens or when your vehicle is left to the mercy of forces beyond your control.

Adjusting Auto Insurance Coverage For Vehicle Depreciation

As most people are aware, many factors go into determining what a auto insurance company charges you for your auto insurance policy. And, every time you reevaluate your auto insurance coverage – which should be done about once a year – each of these factors is changing. One that changes with every mile you drive is your car. Your car continues to depreciate every time you get on the road. This will ultimately affect your auto insurance.

Vehicle depreciation is the market value decline of the vehicle in dollar amounts. There are a number of ways an auto insurance company goes about determining the depreciation of your car. This not only done to adjust your auto insurance rate, but also so they know the value of your car in case an accident causes them to have to ‘total’ out your vehicle. The first method is the straight line method. According to About.com, this method is defined as ‘ calculated by taking the purchase or acquisition price of an asset subtracted by the salvage value divided by the total productive years the asset can be reasonably expected to benefit the driver.’ So, if you bought a $20,000 car and figured all the parts would be worth $10,000, you’d divide that by the number of years you thought it would be useful to get the value. The accelerated depreciation method takes into consideration that as the years go by, the performance of the vehicle diminishes, and therefore the value does as well. This equation will take more into account how old the vehicle is, as opposed to focusing primarily on the monetary value.

One way to protect yourself against the effects of depreciation is to purchase a vehicle that has a high estimated resell value. If you can purchase a vehicle that will hold it’s value longer, depreciation will be less of a worry. In addition, you can also purchase gap auto insurance when you purchase a new vehicle. When you purchase a new car, you take out a loan to cover the amount it cost. Unfortunately, the minute you drive off the lot, that car is worth significantly less than you paid for it. So, if you get in an accident, your auto insurance will pay you the value of the car – which will ultimately be too little for you to pay off the loan. Gap auto insurance will pay off the remainder of the loan after the initial payout, preventing you from having to pay off a loan for a car you can no longer drive.

Car depreciation is an unfortunate reality. Discuss with your auto insurance agent how you can prevent this from effecting your auto insurance rate.


Mistakes To Avoid When Buying Auto Insurance

When it comes to buying auto insurance, many consumers make several common mistakes that can end up costing a bundle. Knowing what these mistakes are and avoiding them when purchasing an auto insurance policy can save drivers thousands of dollars down the road.

First, beware of choosing an insurance company based on price alone. Getting the lowest price might seem like a great deal at first, but, after filing a claim, many policyholders discover they've been taken for a ride when the agency fails to deliver what they promised. A good way to avoid being this is to research a company's reputation before giving them your money. Visit your state's Department of Insurance website. This site will offer you consumer complaint ratios for the insurance companies that sell policies in your state. You can also verify an insurance agent licensing credentials on the site. All of this will help you determine your potential insurer's dependability.

Also, before giving the first representative you question the green light on a policy; see the rates other insurance providers can offer you for the same amount of auto insurance coverage. While some sales agents may try to convince you they offer the best coverage at the most affordable price, doing some comparison shopping of your own will help you get the most for your money. An easy way to compare companies is to use the Internet. Several sites will allow you to enter the type of coverage you want and will then provide you with quotes of what various companies will offer you for the same amount of coverage. Most times this is even free.

Don't make the auto insurance mistake of buying the legal liability limit of coverage. If you are found to be at fault in an accident, you will have to pay the difference. When purchasing liability, remember to factor in the possibility of medical costs, property damage and pain and suffering for multiple passengers. Another major auto insurance mistake shoppers make is providing incorrect information to their insurance agent, which can leave them with too little coverage. When your agent asks if there will be any other drivers operating your car, say yes if you plan ever let a friend or family member borrow your vehicle, even if for a few minutes. This way, if he or she is involved in an accident, your insurance company will properly cover you.

As you shop for an auto insurance policy, avoid these common mistakes that many insurance shoppers make. Avoiding them now could save you hundreds, or even thousands of dollars later, and will ensure you are properly covered in case of an accident.

Many U.s. States See Overall Auto Insurance Premium Drops

Drivers looking for some sort of reprieve from the tough economic times may find help in their auto insurance bills, according to new statistics. Auto insurance premiums have dropped by about 6 percent over the last year, though experts point out that rates are not as low as they were before the recession. Premiums may continue to drop in price as the recession continues. Analysts believe that the state of the economy is directly responsible for the recent drop in premiums, as well as the rise of the same premiums when the stock market crashed initially.

When the United States economy first showed the signs of recession, many policyholders chose an auto insurance policy with higher deductibles or less coverage in order to avoid high premiums. This led to a drop in the demand for auto insurance. Due to this, insurance companies raised rates. Now, plagued by bad investments and fierce competition, companies have begun offering lower auto insurance premiums to qualified drivers. The lower premium averages through 2009 are a result of this tactic. It's important to note that this is not the trend in all states. In some, insurance rates have continued to rise due to location, which directly affects a driver's insurance premiums. Higher premiums may be common in areas with high levels of auto theft or dense traffic. Luckily, the overall the trend is towards lower premiums. Many insurers insist that any increases in insurance premiums on a state-to-state basis are temporary.

Government incentive programs, like Cash for Clunkers and bailouts for the auto industry, have helped the auto insurance industry recover and have strengthened competition – good news to consumers. The programs led to more sales of new cars, which led to higher sales of new auto insurance policies. There is also a higher level of interest in keeping auto insurance rates low, as studies report that 90 percent of consumers research ways to drop their insurance costs. This is an incredibly high figure when compared with pre-recession numbers. When policyholders use the Internet and other tools to comparison shop, competition increases among auto insurance companies, which in turn offer lower premiums in order to keep a base of loyal clients. To take advantage of the lower rates, drivers should use comparison websites to find lower premiums and attempt to negotiate their current insurers into meeting or beating those prices.

While analysts expect current auto insurance rates to continue to fall, there's certainly an element of unpredictability, and rates could easily rise. Drivers can ensure the lowest possible locked in premiums by re-evaluating their car insurance policies on a regular basis, especially in a bad economy.

What Does An Auto Industry Turnaround Mean For Auto Insurance?

With sales down and stocks up, consumers everywhere are intent on saving a buck or two, wherever it may be. This includes not only sticking with their used cars and not buying new ones – putting the auto industry in the red – but also doing what they can to drop their auto insurance policy to an all-time low price – causing even well-known insurance agencies to flounder. What then would the effect be on the auto insurance industry if the auto industry turned around?

Though it isn't the first market people think of when considering industries affected by the economy, the auto insurance industry has fallen on hard times, despite the fact that law mandates it. While drivers are searching online for comparable auto insurance quotes, insurance companies are struggling to balance, maintaining comparable rates and staying afloat. Those they insure are opting to have minimal coverage, or dropping coverage completely, leaving agencies unable to pay for claims made by other policyholders. As a result, these insurance companies are not only having to hike premiums for existing clients, but also having to lay off employees and even close their doors. Unless there's a turnaround, the future is not boding well for the auto insurance industry. According to the Insurance Research Council, it is possible that by 2010, as much as 17 percent of the U.S. will be driving uninsured. Apparently, car insurance doesn't place high on the priority list of "things not to cut from the budget" in American households.

However, this could all change if the auto industry turned around. Though the auto industry was labeled by U.S. bankruptcy/restructuring professionals as one of the hardest hit by the economic crisis, recent government aid is pulling it up to its feet again. If vehicle lots continue to move vehicles, leading to a greater production demand – bringing jobs back on the market and increasing the cash flow in people's pockets – it is possible auto insurance rates could go down. New vehicles cost a substantial amount more to insure than used cars. With a new car comes a higher auto insurance rate, which means higher premiums. The more money more people will be paying to insure new vehicles, the more capable auto insurance companies will be to pay claims up front. In turn, they will be able to drop insurance rates for policyholders.

With the cost of everything rising these days, an increase in the amount drivers have to pay to insure their vehicles should come as no surprise. However, if the auto industry continues to thrive with help from the government, that may no longer be a fact auto insurance holders need to accept.

Pros Of Paying Auto Insurance Monthly Versus In Full

Nearly every auto insurance policy out there offers consumers the ability to pay bills in several ways, commonly either by monthly payment or a "full" payment (usually for six months or a year's worth of coverage). The full payments often offer significant discounts, which is why they're popular among frugal consumers. However, there are also some very notable advantages to choosing a month-to-month auto insurance policy. Before you choose a payment method for your insurance coverage, it's important to consider every advantage and disadvantage of paying month-to-month.

First of all, while it's true that "full" payments save quite a bit in the long run, they're quite difficult to afford in a single chunk payment – especially when starting a new policy. If your auto insurance rate is $1000 for a yearly payment and you don't have that kind of money saved up, it's obviously quite a bit more beneficial to use the monthly plan – at least until you can save up enough money to upgrade to a full payment. Some drivers can also have trouble saving up money each month for full payments. In this case, they find that a month-to-month auto insurance premium is easier to handle, as they're organizationally much simpler. Sometimes an insurance provider offers direct withdrawal from your bank account or credit card.

Monthly fees for auto insurance are also good ways for drivers to see sudden changes in their policies. This is especially beneficial for drivers who occasionally like to check around for better auto insurance rates. In every state of the U.S., you're required to have a new form of auto insurance before canceling an old policy (to prevent any drivers from driving uninsured). If you're working on a month-to-month payment plan, it's a lot easier to switch insurance providers. After switching companies, full auto insurance policy customers will have to wait for their insurance company to issue a refund for any time that they've paid for but won't be using. Paying month to month is much less of a hassle in any sort of insurance transfer, and typically takes less time, too.

There are also some disadvantages to paying for automobile insurance on a month-to-month basis, including, of course, the higher price. But, for many drivers, this method is a much more manageable choice. Of course, if you're exceptionally responsible, have enough money to pay for your auto insurance premium in a large chunk, and you don't look around for different insurance rates, it may be in your best interest to pay in full.

The number of benefits on either side makes it ideal to thoroughly consider your options before deciding on a payment. Ultimately doing this will bring big savings in time and money.

Loophole In Ohio Policy Allows Thousands Of Undocumented Immigrants To Register Cars

Auto insurance laws in Ohio have recently received major attention. Due to a loophole in state policy, thousands of undocumented immigrants have been permitted to register their cars. Many times they are doing so without showing proof of an active auto insurance policy – something mandated by Ohio state law. According to officials at the Ohio Bureau of Motor Vehicles, at the time the policy was made, these consequences were unknown by most policymakers. The issue has caused some controversy in Ohio government. Because of this loophole, the state has become one of the easiest for an undocumented immigrant to obtain driving registration in.

False vehicle registrations will be a problem for Ohio drivers regardless of whether the loophole is fixed by government. Invalid registration forms that have already been processed most likely are accompanied by a lack of auto insurance coverage. Without an auto insurance policy and adequate records of car ownership, these drivers could cause major hassle if involved in a vehicle accident on the insurance end of things. Even if an undocumented driver is covered by some form of Ohio auto insurance policy, their lack of identification puts up other major roadblocks in making insurance claims. In the event of an accident, unregistered drivers may cost other valid drivers on the road major amounts of insurance money.

Though it seems obvious the policy requires reform, policymakers find themselves in a bind. They must consider not only the negative impact from the current policy, but also the negative impact that changing the policy could have on the economy – such as the sale of vehicles or the inability of immigrant workers to travel to their jobs. Policy makers note that undocumented workers do contribute to the state economy. Several Ohio officials and members of the state business community see disallowing them the use of vehicles due to lack of paperwork as unfair. However, state officials are also worried that policy changes may actually prevent lawful auto dealers and consumers from obtaining vehicle registration with ease, potentially making business suffer. But, consider the cost of invalid registration forms for registered auto insurance policyholders who find themselves with a damages claim no one can seem to track down. In the end, decision-making will be a balancing act between the economic and workforce needs of the state of Ohio and the cost of policy reform to business owners and consumers.

Reform and the current state of affairs have been bearing down on the Ohio economy. Though it seems like an easy fix, the policy changes could easily affect everyone – something the government is taking into careful consideration.

Issues To Expect When Buying A New Car For Your Teen

Passing your driving test, especially if done when you are still a teenager, is an incredibly important and exciting event. Far from thoughts of auto insurance, collision coverage and incidental maintenance costs, most teens just start thinking about owning their own car. For the parents, the issues of selecting a car, an auto insurance policy and maintenance package for their newly accredited driver is more pragmatic than celebratory. Buying an auto insurance policy and securing a favorable insurance rate, especially for a new vehicle, can be a complicated process. For this reason, extensive research and knowledge is invaluable.

Buying a new car for a teen driver can be a minefield. As we all know, a new car comes with certain costs that may not accompany a used vehicle. In general, auto insurance can be costly for new vehicles, something that is all the more pronounced when the driver is newly licensed. If you look at the auto insurance rate average for young drivers, you will find them to be higher than those for experienced drivers. When you buy a new car for your teenager, the auto insurance rate does not come with any no-claims bonus or loyalty discount. These are things earned over time. Thus, even if you can afford the new car, considering the auto insurance policy costs may be critical to the overall purchase.

As well as the issues pertaining to auto insurance rate premiums for teenagers driving new cars, there are also the ever-important maintenance costs to consider. Even when a car is new, scheduled maintenance such as oil changes and annual tune-ups can be costly. Older cars may need more maintenance over time, but no car comes without ongoing maintenance cost. Maintenance will also be a contributing factor when finding the right auto insurance policy for your new car and teenage driver, as well as the car you buy.

Overall, there are pros and cons for buying a new car for a teenage driver. Even setting aside the cost of the vehicle, the auto insurance policy rate that you will be offered is based upon the age of the driver even more so than the age of the car. There are two main considerations when throwing this idea around. Buying a new car is costly, so be sure to search around for the most cost efficient auto insurance rate offering an auto insurance policy that has full, comprehensive coverage. The second consideration is the cost of maintenance on a new car, especially for a teenager. Either way, get the best auto insurance to ensure that the teenager and new car are both fully covered.

Infinity Insurance Initiates Program Monarca In Southern California

To assist the large numbers of unemployed workers in Southern California, the auto insurance company, Infinity Insurance, has implemented Program Monarca, a free online job search kit. This excellent resource, offered in both English and Spanish, provides unemployed people all the useful information necessary to finding and securing a job in this tough economy. Coming in an easily printable, PDF format, the kit provides information on how to get started on a job search through networking, newspapers, Internet, and temporary and contract work, as well as using federal and local government resources. Infinity even extends kit users the opportunity to visit one of their local, Southern California auto insurance offices for free assistance in printing, faxing or copying job applications and resumes to ease the process.

The easy-to-read guide provides job experience worksheets to aid job seekers in presenting the most thorough account of their job histories to potential employers. Also included in the kit is a personal information worksheet that gives excellent advice on how to choose references and most effectively present education, skills and personal information, such as address and phone numbers, to anyone reviewing the application. The auto insurance company even provides a practice application form to familiarize people with the process. The guide goes on to offer valuable tips and resources in writing a winning resume, as well as examples and guides to penning a professional cover.

Program Monarca doesn't stop with just resume and job search guidance. They also offer a section on interview preparation, commonly asked interview questions and follow-up so that a job candidate knows the dos and don'ts of interviewing techniques. This includes how to research the company applied to and how to dress and act when trying to make that crucial first impression. Infinity additionally lays out valuable questions to ask the interviewer, so that the applicant is well rehearsed, more comfortable and full of self-confidence.

Through Program Monarca, auto insurance company Infinity has shown corporate and social responsibility to not only their auto insurance policyholders, but to all individuals in Southern California who find themselves out of work and have been unable to secure employment during difficult economic times. The company's generous offer for assistance is available at participating Infinity agencies in locations as far south as Santa Anna, through Inglewood, Los Angeles and Pasadena, and as far north as Fresno. To find more information and download this excellent job resource kit, go to Infinity Insurance's website at www.programamonarca.org. Whether you are a seasoned job hunter or a young student entering the workforce for the first time, Program Monarca offers valuable insights that everyone can benefit from.

How High Risk Drivers Can Obtain Decent Auto Insurance Rates

"Have you done your homework yet?" This question is often asked by parents of their school-age children, and it also should be asked of high-risk drivers who seek to find cheap auto insurance premiums. Although all motor vehicle drivers should investigate the best auto insurance policy, the high-risk driver must put an extra amount of research into this task to find auto insurance premiums that are "financially reasonable". Without taking the time to discover the ways to lessen the typically expensive insurance premiums charged to high-risk drivers, such motorists can find that the portion of their personal income budgeted for such payments is exorbitant.

High-risk drivers are defined as those who are more likely to be involved in a motor vehicle accident. Teenage drivers, the elderly, those with several accidents over a short period of time and people who drive regularly on highly congested roads are among those who may be regarded as high risk. Others within this classification are people who have poor credit or those who drive as a profession at high rates of speed, such as the professional racecar driver. Over-the-road truckers who drive for great distances over prolonged, sustained periods may also bear this label. The cost of auto insurance for high-risk drivers is always higher than that for the average motorist since high-risk drivers are more likely to need the services of their insurance provider.

The number one way to find cheap auto insurance rates without having to do much footwork is to use the Internet to get comparable auto insurance quotes. By simply using search engines like Google or Yahoo, one can generate numerous sources for such estimates. Many of these sources are constructed in such a manner as to allow a customer to compare quotes from several insurance companies. In addition, most give you this service for free. This is an efficient way to begin the quest for the lowest auto insurance premiums.

Once the consumer has found a set of companies he or she is interested in hiring, they should research deductions that may be applicable. One good way to bring down payments is to look at discounts. Many insurance companies offer discounts to safe drivers, students with high academic standing or to people who have attended driver training schools. Also an investigation into a company's policy regarding premium reductions correlated with combining automobile insurance with other forms of insurance at that company should be done. Exploring the possibility of paying lower automobile premiums when several vehicles are combined on one policy could also save money.

High-risk drivers are not completely out of luck when looking to find  an affordable auto insurance quote. They just have to know where and how to look.

Geico Gears Up For Bikers For Tykes & Troops Motorcycle Rally

GEICO, the United States' third largest provider of auto insurance and affordable auto insurance policies, announced April 9-11 as the dates for the 2010 Bikers for Tykes and Troops Motorcycle Rally. GEICO, which stands for government employees insurance company, is a leader in the auto insurance industry, known not only for its great rates, but also for its dedication to the community. And, as an insurance company, GEICO doesn't just focus on cars. According to the company's website provides &quot^Insurance for your motorcycle and all the things that move you." Therefore GEICO Powersports is proud to sponsor this event, designed to build support for children and the military with activities geared toward motorcyclists and motorcycle enthusiasts.

&quot^We are still in the planning stages and do not have too many details worked out yet," Ryan Vinson, event coordinator with GEICO Powersports, wrote in a recent e-mail. &quot^We wanted to get the word out about the dates now that they are confirmed."

Various groups who have benefited through past Bikers for Tykes and Troops Motorcycle Rallies have been the Fight for Children, area Boys and Girls Clubs and National Institutes of Health (NIH) charities. The auto insurance provider has chosen Children's Hospital of The King's Daughters and the USO of Hampton Roads to benefit from next year's event. According to GEICO Communications and a recent press release, &quot^Each year, it is our mission to give back to the Virginia Beach community through this fun weekend and raise even more money than the year before. To date, our Bikers for Tykes & Troops Rally and Concert has raised more than $200,000 for our charitable groups,"  said Joe Thomas, GEICO regional vice president. "We are gearing up for this year to be our biggest and best event so far!"

Bikers for Tykes & Troops events vary, but have included games, bands, stunt riders, local motorcycle vendors and contests. Due to the event's popularity, those planning on attending are advised to book a campsite at the local KOA campgrounds early, especially if participating in the 2010 Freedom Ride. To get an idea on cost (2010 pricing has not been released yet), the 2009 advance ticket prices were $20 for the weekend, with one-day tickets also available. Friday and Sunday tickets were $5 each, and Saturday tickets cost $10. Those 12 and under were free at the 2009 event, and military members got advance ticket prices on event day by showing a valid military ID. To stay updated on Bikers for Tykes and the Troops Motorcycle Rally, visit the event's website at www.bikersfortykesandtroops.org/virginiabeach.html.

Does Your Auto Insurance Policy Cover Your Child While Driving On The Job

Having auto insurance coverage for your whole family is a serious issue to consider. When a teen earns their driver’s license it can be very expensive to cover the cost of insurance on an inexperienced driver. One way many families opt to save is by allowing their new driver to use the family car, as opposed to buying them their own. In allowing your teenager to do this it is imperative that you make sure all the proper insurance coverage is met under your auto insurance policy. This is especially true if you are going to allow your teenage driver to take on a part-time job that requires them to drive around during their work hours.

Make sure to meet with your auto insurance carrier before allowing this so that they can go over your auto insurance policy with you and extend extra coverage where it’s needed. Your insurance provider might not be able to offer you any sort of coverage in this situation. In a case like this, you may have to shop around for a whole new auto insurance carrier and a whole new auto insurance policy. If you are unable to find an insurer who will not cover this sort of risk at all, you may end up taking out a commercial policy on your vehicle.

Most likely, your insurer will have to charge you a larger auto insurance premium to add a teenager using your car for a job. This is because the greater amount of drive time equals more opportunity for an accident, and therefore a greater risk for the insurance company. This rate increase is in addition to the higher cost associated with a young, inexperienced driver. The extra monthly fees are a small price to pay when you consider the peace of mind the necessary coverage will offer you. In addition, it could save you thousands of dollars in the long run. If you go without reporting work-related driving being done by your teenager and they get into an accident, the damage expenses may not be covered by your policy at all.

The high cost of insuring your young driver should not be a reason to get them no coverage at all. There are ways to lower the auto insurance premiums. For example, you can often receive discounts on your auto insurance policy if your teen is on their school honor roll and has kept a clean driving record and legal history.

In order to find the best coverage options in this situation, the best route to take is to do your research thoroughly. Doing this will not only get you and your child the best coverage possible, but will also save you money.

3 Important Things You Should Know About Your Auto Insurance Company

Just about everyone knows they need auto insurance. It's a legal requirement. But what else do you need to know about the subject? Everything you can. Why? Because not having proper auto insurance coverage can mean hard times for you when an accident occurs. It's imperative when shopping for auto insurance that you not only get enough coverage to meet your state's minimum requirements, but to cover yourself and your family fully in case of an accident.

A single accident can financially wipe you out if you don't have the proper auto insurance policy. Take the simple example of a losing concentration while driving and causing serious bodily injury to a third party. You are at fault and therefore responsible to cover that persons medical bills. As long as you are properly covered, you won't have to worry about any of the costs coming out of your pocket. Remember that however careful a driver you are, anything can happen and it pays to make sure that your car insurance covers you reasonably well for every conceivable eventuality.

In order to ensure you have the best auto insurance coverage for you and your family, you should consider three things while buying insurance. First, carefully check out the company you are buying insurance from. What is the track record of this company? What is its reputation? Check with websites like the Better Business Bureau that can offer you detailed background information on the auto insurance company you are researching. Also, examine what the policy they are offering you covers. Ask yourself what type of limits are on this type of coverage, how much you'll have to pay and if there is a deductible payment. If the latter very high, it can easily bankrupt you in an accident. You also have to determine the amount of money it would cost to replace your vehicle if it's totaled. This will help you determine what sort of deductible to place on it.

The third main thing to double check is the amount your auto insurance company is agreeing to payout to victims in an accident. The higher the payout limit, the higher the auto insurance premium you will have to pay. Most motorists buying insurance never hear about this detail. The result? A nasty surprise when an accident occurs and the limit offered by your insurance company doesn't even cover the costs of the injured party you have hurt. Money will then have to be paid out of your pocket.

As important as it is to keep an open mind during the auto insurance quote research process, it's just as important to keep your eyes peeled to make sure you're getting the proper auto insurance coverage.

Get a Free Auto Insurance Quote to Start Saving Money

In this economy, many people are looking for ways to reduce their costs on a monthly basis. Besides driving less, eating in more and clipping coupons when grocery shopping, there are other ways to save money. We all have fixed monthly expenses such as our cable bill, phone bill and so forth. Many people get auto insurance and then let the policy ride from year to year without seeing if they are over-paying or have too much or too little coverage. A good way to start saving money is to grab a copy of your current auto insurance policy (or print it out). Then, visit AutoInsuranceQuote.com and enter your zip code to find trusted auto insurance companies who service your area. Fill out a short form using your current policy as a guideline and then you will be presented with an auto insurance quote that fits your policy needs. Comparing multiple auto insurance quotes will help you possibly save hundreds of dollars per year. Get started with a free auto insurance quote today.

What’s An Auto Insurance Binder

Understanding the terms of your auto insurance coverage is crucial. Otherwise, you might end up driving with less coverage than you’d thought, or you might even end up on the road without an active auto insurance policy. This happens to many policyholders because they don’t familiarize themselves with the details of their insurance coverage. One part of most car insurance policies that’s often neglected by motorists is the auto insurance binder. Many drivers aren’t even aware of what a binder is, much less how it works. It’s certainly a term you want to know when you’re shopping around for an auto insurance quote because it pertains to when your new insurance becomes active, and when your policy becomes officially legal.

The selling insurance company issues an auto insurance binder when a driver first purchases the auto insurance policy. The binder provides temporary proof of insurance. You should be able to find the active dates of the binder listed on the card. (If you buy your insurance online, you might print the binder, in which case it’s listed somewhere on the page that you print off). An auto insurance binder is issued while underwriting is completed for your insurance policy. Basically, the binder provides proof that you legally have auto insurance coverage, but indicates that your policy isn’t completely purchased or active yet. After the underwriting process is complete, an official insurance card will replace the binder. Depending on the state that you live in, the length of an auto insurance binder might vary. It may be helpful to research your own state’s laws to ensure that your insurance is valid before you hit the road.

It’s a bit complicated, as you might have noticed. But all a policyholder needs to know is that their policy is active and legal as long as they keep the auto insurance binder with them, and replace the binder with proof of insurance cards as soon as they can. If you get into an accident in your newly-insured car while you’ve got a binder, you can still make a claim on your new insurance policy, and you still have all of the coverage that you paid for when you purchased your new plan.

Remember, it’s always a good idea to familiarize yourself with your insurance policy. If there are any terms that you don’t understand, contact your insurance agent immediately, and when looking for an auto insurance quote, inspect all parts of prospective policies. If you get into an accident, it will be very helpful to know how your auto insurance coverage works, and you’ll save yourself a lot of hassle when submitting a claim.